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Dec 31, 2025
Forrester Q4 2025 Earnings Report
Forrester Research reported a decline in contract value and missed financial expectations for the fourth quarter of 2025.
Key Takeaways
Forrester Research announced its fourth-quarter and full-year 2025 financial results, reporting a 6% decrease in contract value to $292.4 million compared to the prior year. The company experienced a net loss of $33.9 million for the quarter, including a significant non-cash goodwill impairment charge. Despite some momentum in cash flow and client retention, overall financial performance fell short of expectations, leading to a restructuring to improve cost efficiency and focus on CV growth.
Total revenues for Q4 2025 were $101.1 million, down from $108.0 million in Q4 2024.
The company reported a GAAP net loss of $33.9 million, or $1.78 per diluted share, for Q4 2025, compared to a net income of $0.4 million in Q4 2024.
A non-cash goodwill impairment charge of $26.8 million significantly impacted Q4 2025 results.
Adjusted net income for Q4 2025 was $3.2 million, or $0.17 per diluted share, reflecting a decrease from $6.8 million in Q4 2024.
Revenue by Segment
Forward Guidance
Forrester is providing full-year 2026 financial guidance with anticipated total revenues between $345.0 million and $360.0 million, representing a decline of 13% to 9% versus the prior year. The company expects a GAAP diluted loss per share of approximately $0.20 to $0.10 and an adjusted diluted earnings per share of approximately $0.72 to $0.82.
Positive Outlook
- Adjusted operating margin is expected to be approximately 6.0% to 6.5%.
- Adjusted effective tax rate is projected at 29%.
- Adjusted diluted earnings per share are anticipated to be between $0.72 and $0.82.
- Exclusion of stock-based compensation expense ($11.0M-$12.0M) from adjusted guidance.
- Exclusion of amortization of acquisition-related intangible assets ($8.3M) from adjusted guidance.
Challenges Ahead
- Total revenues are expected to decline by 13% to 9% compared to the prior year.
- GAAP operating margin is projected to be negative 0.8% to negative 0.3%.
- GAAP diluted loss per share is expected to be approximately $0.20 to $0.10.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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